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Avanti Airlines is attempting to estimate the direct cost of flying a passenger from Bologna, Italy to Bordeaux, France. The estimation of direct costs is
Avanti Airlines is attempting to estimate the direct cost of flying a passenger from Bologna, Italy to Bordeaux, France. The estimation of direct costs is the initial step in determining a new pricing strategy for the firm. A careful examination of operations, however, indicates that very few costs can be traced directly to a specific passenger on a flight.
Identify the direct costs of servicing an airline passenger and how they could be measured.
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